Third party due diligence services

What is due diligence?

Due diligence is the process of evaluating the current state of a target company’s assets prior to acquisition or an investment decision. It is the standard and precautionary care that should be taken in order to make informed decisions before entering into a transaction or signing a contract. Due diligence research is especially beneficial in the areas of mergers and acquisitions, initial public offerings (IPOs), re-organisation and re-structuring, management buy-outs (MBOs), insolvencies as well as sale and leaseback transactions.

Why is third party due diligence important?

Due diligence reviews will reduce the level of risk inherent in investments, planning and future use of real estate and industrial assets. Beyond enhancing your legal certainty and liability protection, carrying out due diligence is essential for achieving your business objectives and financial targets.
Engaging a third party to conduct due diligence on your behalf, ensures that you would be able to base your decisions on detailed, impartial and reliable results. We provide integrated due diligence services that combine technical, environmental, sustainability and commercial due diligence. Our holistic approach can have a materially beneficial effect on the operation and value of your assets.

What do due diligence services involve?

TÜV SÜD provides integrated due diligence services that combine technical, environmental, sustainability and commercial due diligence. Our holistic approach can have a materially beneficial effect on the operation and value of your assets.

Technical due diligence (TDD)

Our experts analyse building structures, materials and technical systems to identify structural, technical, environmental and financial risks and opportunities for real estate investments. In addition, we determine the value and future viability of technical installations and equipment, and review the efficiency and competitiveness of plant technology and production processes. We use a holistic approach to check the plausibility of capital expenditure and operational expenditure assumptions, and identify possible needs for future investments and the development of operational costs. This provides a technical perspective for evaluating whether the business and financial targets of a transaction are realistic.

Environmental due diligence (EDD)

With our expertise in local and international environmental legislation, we perform integrated analysis of existing contaminations in soil or building materials, indoor pollutants, waste management and other environmental factors. We narrow down environmentally sensitive areas and estimate the potential financial risk.

Sustainability due diligence (SDD)

TÜV SÜD’s experts look at the current state and potential risks of your assets to evaluate long-term sustainability value. SDD serves as an initial assessment in line with the guidelines in common sustainability rating systems (BREEAM, LEED). We investigate a building’s potential sustainability score, advise on the most suitable system and recommend ways to improve its rating.

Commercial due diligence (CDD)

We cover commercial analyses and the assessment of location and market factors, taking into account legal requirements, and general and special lease agreements. CDD determines the competitive landscape, right valuation, growth opportunities, potential risks and investments.